Silver Price Forecast: XAG/USD gains momentum above $28.00 on rising industrial demand

Source Fxstreet
Apr 18, 2024 07:23
  • Silver price extends its upside around $28.50 in Thursday’s early European session. 
  • Rising industrial demand and ongoing tensions in the Middle East benefit the white metal. 
  • The higher chance that the Fed will delay its easing cycle might cap the upside of the silver price.

Silver price (XAG/USD) gains momentum near $28.50 on Thursday during the early European session. The upsurge of the white metal is bolstered by rising industrial demand and safe-haven flows amid the ongoing geopolitical tensions in the Middle East. 

The Silver Institute released its annual World Silver Survey on Wednesday, showing that industrial demand in the silver market is expected to hit another record high this year, climbing 9% to 710.9 million ounces. The rising demand is driven by silver demand for Photovoltaic (PV) solar panels. Furthermore, the ongoing tensions in the Middle East, particularly between Iran and Israel, might further fuel the demand for silver. ANZ commodity analysts said that silver still has significant potential, even after hitting solid resistance at $29.90 last week.

On the other hand, the growing speculation that the Federal Reserve (Fed) will delay its easing cycle might cap the upside of silver price. Fed Cleveland President Loretta Mester said on Wednesday that inflation is higher than anticipated and the Fed needs more confidence in its trajectory. Earlier this week, Fed Chair Jerome Powell emphasized that he will wait for more evidence to gain confidence that inflation is headed toward the central bank’s 2% goal before lowering borrowing costs. It’s worth noting that the higher-for-longer US rate narrative might dampen demand for white metal, a non-interest-bearing asset. 

XAG/USD

Overview
Today last price 28.49
Today Daily Change 0.29
Today Daily Change % 1.03
Today daily open 28.2
 
Trends
Daily SMA20 26.6
Daily SMA50 24.7
Daily SMA100 24.07
Daily SMA200 23.68
 
Levels
Previous Daily High 28.8
Previous Daily Low 28.08
Previous Weekly High 29.8
Previous Weekly Low 26.88
Previous Monthly High 25.77
Previous Monthly Low 22.51
Daily Fibonacci 38.2% 28.53
Daily Fibonacci 61.8% 28.36
Daily Pivot Point S1 27.92
Daily Pivot Point S2 27.64
Daily Pivot Point S3 27.19
Daily Pivot Point R1 28.64
Daily Pivot Point R2 29.09
Daily Pivot Point R3 29.37

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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